Closing Bigger Deals: The CFO Challenge and the XPS Solution

In today’s competitive market, closing large deals can be a daunting task. One of the biggest obstacles faced by channel partners is the CFO’s increasing influence over purchasing decisions. CFOs are becoming more focused on cash flow and budget constraints, making it essential to structure deals in a way that aligns with their financial goals.

The Rising Importance of the CFO

The CFO’s role in purchasing decisions has become more prominent due to several factors:

• Capital constraints: The current economic climate has limited upfront capital expenditures, making cash flow a top priority.
• Cash management focus: CFOs are tasked with managing cash risk, which includes cash flow, cash use, and cash management.
• Shift in decision-making: More decisions are now made at the CFO level rather than solely by IT or procurement.

The Challenges of Closing Bigger Deals

To successfully close larger deals, channel partners must address the commercial side of a proposal and consider the CFO’s perspective. This includes:

• Structuring deals for cash flow: Propose payment terms that align with the CFO’s budget and cash focus.
• Addressing multi-year deal risks: Consider factors such as inflation, cost of capital, currency variation, and annual price increases.
• Shortening sales cycles: Qualify with the CFO early in the process to avoid delays and last-minute surprises.

The Channel’s Complexities

In addition to the challenges posed by the CFO, channel partners also face complex internal issues:

• Unique customer terms: Customers often impose credit terms that are difficult to manage.
• Vendor-imposed terms: Vendors may negotiate unfavourable terms that negatively impact the channel’s cash flow.
• Limited liquidity: Channel partners may lack the cash reserves to offer deferred payment terms.
• Lack of expertise: Many partners lack the in-house capabilities to scale a suitable deferred terms offering.

The XPS Solution

XPS is a unique solution that addresses these challenges by bridging the gap between vendors and channel partners. XPS allows channel partners to offer structured or deferred payment terms to end user customers, making it easier to close larger deals.

Key benefits of XPS:

• Simplified negotiations: XPS handles the complexities of payment terms, allowing partners to focus on building relationships.
• Zero Paperwork: No third-party or finance agreements to sign. Orders are placed as usual.
• Improved deal closure: Offer flexible payment options to close larger deals.
• Enhanced customer satisfaction: Meet the needs of customers with cash flow constraints.
• Increased revenue: Close business on time, improve customer retention, and boost profitability.
• Competitive edge: Offer a unique service that sets you apart from competitors.

How XPS Works

XPS offers a simple and efficient process:

1. Partner enquiry: Contact the XPS team to discuss your needs.
2. Customised solution: XPS creates a tailored payment plan for your deal.
3. Streamlined process: Enjoy a hassle-free experience with no paperwork.
4. Enhanced revenue: Offer flexible terms to your customer while vendors receive upfront payment.

Conclusion

By using XPS, channel partners can overcome the challenges of closing large deals and achieve greater success. With its flexible payment terms and streamlined process, XPS is a valuable tool for any channel partner looking to grow their business.

Further Reading

MORE ABOUT THIS SERVICE

PRESS RELEASE